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U.S. NEWS Friday 30 September 2022
GOP states sue Biden administration over student loan plan

By SEUNG MIN KIM pare to resume loan pay-
Associated Press ments in January. "
WASHINGTON (AP) — Six Biden's forgiveness pro-
Republican-led states are gram will cancel $10,000 in
suing the Biden administra- student loan debt for those
tion in an effort to halt its making less than $125,000
plan to forgive student loan or households with less than
debt for tens of millions of $250,000 in income. Pell
Americans, accusing it of Grant recipients, who typi-
overstepping its executive cally demonstrate more
powers. financial need, will get an
It's at least the second legal additional $10,000 in debt
challenge this week to the forgiven.
sweeping proposal laid out The administration also said
by President Joe Biden in it would extend the current
late August, when he said pause on federal student
his administration would loan repayments — put on
cancel up to $20,000 in ed- hold near the start of the
ucation debt for huge num- pandemic more than two
bers of borrowers. The an- years ago — once more
nouncement, after months through the end of the
of internal deliberations year.
and pressure from liberal President Joe Biden speaks during the White House Conference on Hunger, Nutrition, and Health, The administration faced
activists, became immedi- at the Ronald Reagan Building, Wednesday, Sept. 28, 2022, in Washington. threats of legal challenges
ate political fodder ahead Associated Press to its plans almost imme-
of the November midterms the Covid-19 pandemic ity to override that." revenue to state coffers. diately, with conservative
while fueling arguments over, yet is still using the on- The states of Iowa, Kansas, The administration has long attorneys, Republican law-
from conservatives about going health emergency Missouri, Nebraska and said it was confident the makers and business-ori-
legality. to justify the wide-scale South Carolina joined Ar- forgiveness program would ented groups asserting that
In the lawsuit, being filed debt relief. kansas in filing the lawsuit. survive court challenges. Biden was overstepping
Thursday in a federal court "It's patently unfair to sad- Iowa has a Democratic "Republican officials from his authority in taking such
in Missouri, the Republican dle hard-working Ameri- attorney general, but the these six states are stand- sweeping action without
states argue that Biden's cans with the loan debt of state's Republican gover- ing with special interests, the assent of Congress.
cancellation plan is "not re- those who chose to go to nor, Kim Reynolds, signed and fighting to stop relief Democratic lawmakers
motely tailored to address college," Arkansas Attorney on the state's behalf. The for borrowers buried under battling in tough reelection
the effects of the pandem- General Leslie Rutledge, states argue that Mis- mountains of debt," White contests also distanced
ic on federal student loan who is leading the group, souri's loan servicer is fac- House spokesman Abdul- themselves from the stu-
borrowers," as required by said in an interview. ing a "number of ongoing lah Hasan said Thursday. dent loan plan, as Republi-
the 2003 federal law that She added: "The Depart- financial harms" because "The president and his ad- can officials called it an un-
the administration is using ment of Education is re- of Biden's decision to can- ministration are lawfully fair government giveaway
as legal justification. They quired, under the law, to cel loans. Other states that giving working and middle for relatively affluent peo-
point out that Biden, in an collect the balance due on joined the lawsuit argue class families breathing ple at the expense of those
interview with CBS' "60 Min- loans. And President Biden that Biden's forgiveness room as they recover from who didn't pursue higher
utes" this month, declared does not have the author- plan will ultimately disrupt the pandemic and pre- education.q

Detroit begins demolition of blighted

Packard car plant

By COREY WILLIAMS the 3.5 million-square-foot employees and neighbor-
Associated Press (0.33 million-square-meter) hood residents,” the city
DETROIT (AP) — Demolition Packard plant complex, said in a news release.
of the long-vacant Pack- which Peruvian developer Detroit took over the com-
ard auto plant in Detroit and owner Fernando Pala- plex in 1994 when an inves-
started Thursday as crews zuelo failed to do after buy- tor failed to pay taxes. An-
began tearing apart an ing it in 2013. other company later took
already crumbling exterior The city called Thursday’s ownership but also would
wall of the massive struc- work an “emergency lose the property due to
ture. demolition.” The plant is unpaid taxes.
A demolition claw ripped among dozens of large Palazuelo bought the com- A demolition claw begins razing part of the long-vacant
and tugged on decades- structures that Detroit offi- plex for $405,000 at a tax Packard auto plant on Thursday, Sept. 29, 2022, in Detroit.
old bricks and concrete cials have identified to be foreclosure auction, saying Associated Press
along the upper floors of torn down or renovated. then that he wanted to turn compliance allowed the site. “He is under court or-
the old eastside factory Duggan has said that some it into apartments, shops city to move forward with der to pay for (the demo-
that for generations has parts of complex might be and art galleries. The devel- demolition plans. lition). We certainly will go
been a symbol of urban saved for redevelopment. opment never happened. “He broke every single after every asset he has in
blight in the Motor City. “The structure is adjacent Palazuelo failed to apply promise until the courts, fi- America, and if we can fig-
The work follows up on a to an operating business, for demolition permits by nally, wouldn’t put up with ure out how to go after his
plan by Mayor Mike Dug- and creates an imminent a court-ordered deadline it anymore,” Duggan said assets in Peru, we’re gonna
gan to start razing parts of danger to that building, its earlier this year. His non- Thursday at the demolition do that, too.”q